The Caribbean Development Bank (CDB) got a major boost from Canada at the 2025 G7 Leaders’ Summit, with the announcement of a US$200 million portfolio guarantee as part of a larger US$400 million package for Latin America and the Caribbean. The money will help CDB free up risk capital and lend more to Caribbean countries that need development funding.
Canada is using its G7 presidency to push new financing tools for multilateral development banks. The full US$400 million will be shared between CDB and the Inter-American Development Bank, and could unlock up to US$1.6 billion in new lending for the region.
The guarantee will help CDB improve its balance sheet and make more loans to member countries without hurting its credit ratings. CDB President Daniel Best called Canada’s support “a game-changer for the Bank and the region,” saying it shows how “partnerships and financial innovation” can “drive meaningful development outcomes.” The deal works with CDB’s balance sheet program, which copies successful financial tools from other development banks to boost lending capacity.
CDB praised Canada’s leadership in focusing on development needs for emerging markets and small island states. The bank expects this partnership will help Caribbean nations tackle environmental, social, and economic problems while keeping their finances stable over time.
